Nigeria: CBN boosts forex market with $210m

The Central Bank of Nigeria (CBN) yesterday announced the injection of $210 million into the inter-bank foreign exchange market.

Acting Director, Corporate Communications Department, CBN, Isaac Okorafor broke the hews in Abuja. He said $100 million was offered to the wholesale segment.

The Small and Medium Enterprises (SMEs) segment got $55 million. The invisibles segment (i.e. tuition fees, medical payments and Basic Travel Allowance (BTA), among others), was also allocated $55 million.

Okorafor said the releases were part of efforts aimed at boosting liquidity in the forex market, facilitating trade and easing remittances for legitimate personal commitments.

While attributing the long spell of calm in the market to the interventions of the CBN and the cooperation of all stakeholders, Okorafor said the convergence of rates between the interbank market and the Bureau de Change segments, had all but converged with customers able to buy forex from either market at not more than N362 to a dollar.

In spite of the development, he stressed that the CBN would continue in its monitoring of the market in order to ensure that authorised dealers abide by the extant rules. Meanwhile, the naira maintained its steady rate against the United States Dollar, exchanging for N361 to dollar in the bureau de change segment of the market.

Nigeria plans to sell N117.17 billion worth of treasury bills at an auction on Nov 29, traders said.

The CBN plans to offer N26.14 billion in three-month paper, N11 billion in six-month bill and N80.03 billion in one-year note. Results of the auction will be announced next day.

The bank issues treasury bills twice a month to help the government to finance its budget deficit, curb money supply growth and provide an avenue for lenders to manage liquidity.

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